01-19-2021: Protolabs acquired the online manufacturing platform 3D Hubs
3D Hubs was later transforming it into the Protolabs Network
On January 19, 2021, Protolabs—one of the largest service providers specializing in injection molding, CNC machining, and additive manufacturing—acquired 3D Hubs. Initially, 3D Hubs was a platform connecting hobbyists and amateurs offering small-scale 3D printing services, but it later evolved into a significant service platform that incorporated a range of manufacturing methods beyond additive manufacturing.
The acquisition deal was valued at $280 million—$130 million paid in cash, with the remaining $150 million in Protolabs stock. Additionally, the agreement included a $50 million earn-out (half in cash and half in stock) if 3D Hubs achieved specific financial milestones over the next two years.
Protolabs and 3D Hubs operated in relatively similar ways within overlapping markets. Founded in 1999 in Minnesota, USA, Protolabs focused on developing proprietary software to automate production processes. Initially relying on traditional manufacturing techniques, it gradually expanded its portfolio to include 3D printing, injection molding, CNC machining, sheet metal fabrication, and other additive manufacturing services, leveraging a vast machine park. Protolabs is a publicly traded company listed on the New York Stock Exchange.
3D Hubs, on the other hand, had a different journey. Founded in 2013 in the Netherlands, it started as a platform connecting individual owners of amateur 3D printers who provided 3D printing services. Over time, companies with larger, more efficient industrial-grade machines joined the platform, leading to its professionalization. By 2018, 3D Hubs decided to exclude small, desktop-grade printers users and focus solely on facilitating services offered by large manufacturing companies, expanding its portfolio to include the same technologies as Protolabs.
This shift caused a considerable uproar among hundreds of small-scale entrepreneurs who had been growing their businesses through 3D Hubs. But despite the fuzz, the platform thrived. At the time of its acquisition by Protolabs, 3D Hubs was collaborating with 240 manufacturing companies worldwide and boasting the production of 6 million custom parts.
Shortly after the acquisition, 3D Hubs dropped "3D" from its name. A year ago, on January 2024, Hubs was fully rebranded as Protolabs Network. The rebranding followed a successful period for Hubs, which reported significant year-over-year revenue growth in 2023 (+87% in Q3 alone) and expanded its network to over 250 "highly vetted" suppliers.
Source: www.protolabs.com